The US is now home to almost a quarter of a million solar workers. From 2018 to 2019 alone, this sector gave rise to 5,600 new job openings. Solar panel installation jobs have also increased in two-thirds of all 50 US states.
The third quarter of 2020 also saw a 14% growth in projects that involve installing solar panels in US homes. After all, many property owners had to delay installations due to stay-at-home restrictions.
Now that solar installers can go back to work, it’s time to consider getting your own system before the new year. This way, you can harness the sun’s power and save on electricity bills sooner. Moreover, getting your solar panels set up this year qualifies you for a much bigger tax credit.
Ready to learn how and why going solar this season makes a difference? Then let’s dive right into it!
Reduced Electricity Usage From Day 1
A licensed solar company can finish a home rooftop installation job in one to three days. If your roof is in great condition, the installers can complete the task in less than a day. As soon as they do, and the sun is still out, the panels can start harvesting the sun’s power.
How much energy your system can produce in an hour depends on its wattage. For instance, the average US residential solar PV system size ranges from 3 to 10 kilowatts (kW). In ideal conditions, they should be able to produce 3 to 10 kilowatts per hour.
Now, according to the EIA, the average US home used 10,649 kilowatt-hours of electricity in 2019. That’s 877 kWh of electricity per month, putting the hourly average consumption at 1.2 kWh.
So, even if your new 3kW solar PV system only generates 3kW on day 1, you can already save two hours’ worth of electricity. From day 2 onwards, your panels’ peak generation should be at least 5 hours a day.
As such, the earlier you go solar, the sooner you can stop relying on your electricity provider. This, in turn, means more savings in the long run.
Installing Solar Panels After 2020 Reduces Federal Tax Credits
One of the top reasons to get your home solar PV system installed this season is to maximize your tax incentive. Installations that commence by December 31, 2020, can get a 26% federal tax credit. If you qualify, you can get a dollar-for-dollar reduction on your future federal income tax.
If you wait until 2021, your qualified system will only net you a 22% tax credit. This program expires on January 1, 2022, for home solar panel installations. So, residential PV panels installed after 2021 will no longer get any tax incentive.
Bigger Tax Credits Equate to Less Taxes Owed
Suppose you spend $12,500 on your solar PV system installation. Qualifying for the 2020 federal incentive gives you a credit of $3,250 (26% x $12,500). You can then deduct this $3,250 from the total federal income tax you’ll owe next year.
If you wait until 2021, you can only get $2,750 of credits from your solar panel installation cost. That’s a $500 difference from what you could’ve otherwise received with the 26% credit.
Going Solar Means Going Green and Saving More Benjamins
Installing solar panels this season can be one of the best gifts you can give yourself and your family. It’s also awesome for the environment, as solar power helps cut your carbon footprint. The savings you can reap from day 1 (and the tax incentive) are also a much-welcome bonus.
So, do yourself, your wallet, and the environment a favor by going solar this season.
Looking for more ways to live greener and healthier? Feel free to browse our site’s other blog categories and posts then!